Meeting the challenge of equitable socio-economic growth for people

This week the Central Bank officially released a detailed assessment of the Gross Domestic Product (GDP) at provincial level. As evident from 1996, the regional disparity in economic growth has been declining and this indeed is a healthy sign.
Last year the national GDP at current prices grew by 23.2% in 2008, reaching Rs.4,411 billion with a per capita income of Rs.218,161, equivalent to US$ 2,014.
Whilst the Western province’s share in GDP continues its dip, to 45.4% in 2008 from 46.5% in 2007, contribution from all other provinces except Uva province either increased or remained at the same level over the previous year according to the Central Bank.
Southern and Northwestern provinces contributed 10.6% and 10.0% to the GDP in 2008 compared to 10.5% and 9.9% respectively in 2007. The Central, Eastern and Northcentral provinces also recorded improvements even though the contribution of each of these three provinces to total GDP still remained at less than 10%. The Northern (2.9%) followed by the Uva (4.6%) were the provinces with the lowest contributions to GDP.
Another notable feature as per the Central Bank statement, is that the provinces with smaller GDP have grown faster. For example Northcentral province, Eastern province, Central province, Northwestern province and Southern province recorded nominal growth rates of 45.1%, 30.7%, 26.7%, 24.5% and 24.1% respectively.
However, contrasting this observation, two provinces i.e. Northern and Uva which had smaller share in the GDP grew slower. As emphasised by the Central Bank, these provinces require a further boost to develop income generating activities.
The observation from the Central Bank is timely as it comes ahead of the Uva Provincial Council elections as well as local polls in Jaffna and Vavyniya.
Despite successive administrations and their micro programmes as well as macro initiatives by the Government, the Uva Province remains a laggard in the country in relation to some of its other peers of Sri Lanka.
The North and East could be excused because of the heavy toll arising out of 30 year old conflict, but Uva given its past glory and also the inherent potential, requires a much more concerted bipartisan effort for real socio-economic prosperity. The contenders for the chief ministerial post as well as seats in the Council must be alive to this challenge.
It is understandable that battling terrorism for the past 30 years as well as other local shocks amidst global crises had sapped Sri Lanka’s energy in the recent past. Hence if the conflict was a bane in the country’s forward march, with its end, Sri Lanka now has golden opportunity to develop the war-torn provinces, whilst the winds of peace should rejuvenate confidence, optimism and people’s collective efforts to make the entirety of Sri Lanka truly prosperous.
In the past many governments have only paid lip service to ‘equitable growth’ whilst some commendable programmes and policies failed to survive or have their desired effects due to various reasons. Given the wave of patriotism in the aftermath of the war victory, a way forward would be to harness the same to win the economic battles at provincial level.

Inclusive approach crucial
A more inclusive approach involving the people in the area especially key stakeholders such as the private sector and workers will be crucial. The best of ideas to develop the province can only come from the very populace and politicians must empower such ideas to fruition with good governance. Sri Lanka has certainly lost valuable time with politicians mistakenly thinking they know and have answers to all the problems, be they national or provincial. History is full of lessons that such an egoistic attitude has only failed the very office such political leadership held, and the people who elected them.
Sri Lankans by nature are very warm, and the civil society would certainly contribute if engaged sincerely. Politicians certainly can give leadership, but for that they must also listen to and engage the people. After all, equitable growth revolves around people and the most needy beneficiaries are the poorer sections of our society.